Expect precious, base metals to trade higher: Angel

Angel's report on international commodities

News and Analysis

• Nymex and Comex floor trading closed today on eve of Labor Day.
• Spanish Manufacturing PMI increased to 51.1-mark in August.
• UK’s Manufacturing PMI gained to 57.2-mark in last month.

European equities higher today on the back of favorable economic data from the region. Asian markets ended on a positive note and US futures are trading in the green. Spanish Manufacturing Purchasing Managers' Index (PMI) increased by 1.3 points to 51.1-mark in August as against a rise of 49.8-level in July. Italian Manufacturing PMI rose by 0.9 points to 51.3-level in August from 50.4-mark a month ago. European Final Manufacturing PMI was at 51.4-mark in last month with respect to 51.3-level in July. UK’s Manufacturing Purchasing Managers' Index (PMI) gained by 2.4 points to 57.2-mark in August as against a rise of 54.8-level in July. Spot gold prices declined around 0.5 percent today on the back of strength in the DX. However, sharp downside in prices was capped due to upbeat global market sentiments and recovery in SPDR holdings. In the Indian markets, prices fell around 0.9 percent prices on the MCX. Spot silver prices gained around 2.1 percent today taking cues from strength in base metals as well as favorable data from China, UK and Euro Zone. However, sharp upside in prices was capped as a result of strength in the DX along with downside in gold prices. On the domestic bourses, depreciation in the Rupee pushed prices to the upside. The base metals group was trading on a positive note today on the back of favorable economic data from Euro Zone, UK and China. Further, upbeat global market sentiments supported the upside. However, strength in the DX and mixed LME inventories scenario  prevented further gains in prices on the LME. LME Copper prices witnessed gains of around 1.5 percent as a result of positive manufacturing data from China and Euro zone and upbeat global markets. However, strength in the DX and marginal rise in LME Copper inventories which stood at 589,750 tonnes prevented sharp gains. Depreciation in the Rupee led to gains in prices on the MCX. The near month copper contract touched a high of Rs.491/kg till 4:30 pm IST. Nymex crude oil prices traded on a negative note and fell around 0.7 percent today on account of ease on Syria concerns after US president announced that would seek approval from lawmakers regarding military action against Syria. Strength in the DX also led to weakness in the prices. However, upbeat global market sentiments cushioned sharp downfall. In the Indian markets, depreciation in the Rupee restricted sharp downside in prices on the MCX. Outlook: In the evening session, we expect precious metals and base metals prices to trade higher on the back of upbeat global market sentiments. Further, positive economic data from China, UK and Euro Zone will support an upside in prices. However, sharp upside in prices will be capped as a result of strength in the DX. Crude oil prices will trade lower taking cues from ease of military action on Syria from US as government needs approval from Congress. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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